Saturday, May 12, 2007

I did a Net Current Asset Value search on the market and came up with a company called Bexil (BXL) which I posted on earlier. This led me to to a company associated with Bexil, called Winmill & Co.

Winmill has large stakes in four other publicly traded entities and those stakes are worth $10.1 million, while WNMLA has a market capitalization of around $6.9 million. Please understand that I am not saying run out and buy any of these but I thought I would post it for everyone to look at.

The Math

Winmill & Co. (WNMLA)

Oustanding Shares as of 9/30/06

1,539,082

Closing Price as of 4/30/07

$4.50

Market Capitalization - $6,925,869

The Play

Winmill owns large pieces of four other publicly traded companies as follows:

Bexil (BXL)

A company with no operating businesses that has $37 million in net assets with a market cap of $29 million. Winmill owns 25%. They are looking for an operating business to buy. (See my previous post on Bexil)Tuxis Corp (TUXS)

A real estate company that just deregistered from the listed market and moved to the pink sheets. Winmill owns 24%.

The main asset is a 215 acre parcel of undeveloped land located in Clinton Corners and Millbrook, New York. It was bought in 2005 for $1,951,700 in cash.

The market capitalization is $5.4 million.

Foxby Corp (FXX)

A closed end fund that trades on the AMEX. Winmill owns 24%. The market capitalization is $6.37 million.

The sum total of Winmill's share of these three is:

Foxby0.24$ 1,663,200.00

Tuxis0.24$ 1,310,389.63

Bexil0.25$7,194,327.39

Total $10,167,917.02

There is even a fourth company that Winmill owns a piece of. It is called the Global Income Fund (GIF) but it is immaterial to this analysis.

The $10,167,917.02 value is actually understated because I was using the market cap of $28 million for Bexil, not the net asset value which is considerably higher.

The BadWinmill & Co. is a family controlled company, where the Winmills or associated entities control more than 50% of the vote. I believe all the companies above have the same type of control by the Winmill family.

Stocks like this fascinate me but more research must be done before leaping into this name.